Friday, February 25, 2011

Oil: We Need It, they Got It

A snapshot of the oil market and the American lifestyle (consumption).

It's pretty easy to sum up America's role in the global market for oil: We need it, they got it. Here are the numbers, via the U.S. Energy Information Administration for 2009 (last year data available).

U.S. oil consumption: 18.8 million barrels per day (MBD)

U.S. oil production: crude oil: 5.36 MBD; all oil (including liquids from natural gas, etc.):9.14 MBD. 48.6% of consumption

Oil exporters sell us: 9.67 MBD 51.4% of consumption

Where we get the oil from (top 15 suppliers to the U.S.)

World oil production: 85.5 MBD

World oil consumption: 85.6 MBD

Percentage U.S. consumption of global total: 22%

Interesting statistical note: many commentators use the total consumption of 18.8 million barrels per day and the 5.35 MBD of crude oil production to then conclude the U.S. only supplies some 28.5% of its oil consumption. This is not true; including other liquid oil supplies drawn from natural gas wells, etc., the U.S. still produces about half of the oil it consumes. The U.S. remains the Number Three producer of oil, just behind Russia and Saudi Arabia. The U.S. produces roughly the same amount of oil as Canada, Mexico and the United Arab Emirates combined (numbers 6,7 and 8 in the list of top oil producers). The U.S. is also far and away the world's top consumer of oil. (China may consume more energy, but much of this is coal, not oil.)

Oil, like all commodities, is priced on the margin, meaning that a relatively small imbalance between demand and supply can produce large swings in price. What would happen if oil supplies were reduced by 1 million barrels day? Or 5 MBD? Who wouldn't get their previous allotment? How much would the winning bidders have to pay per barrel?

Those are questions that the market may have to answer if turmoil in the Mideast and North Africa seriously disrupt global oil exports.

If you would like to post a comment, please go to

Order Survival+: Structuring Prosperity for Yourself and the Nation (free bits) (Mobi ebook) (Kindle) or Survival+ The Primer (Kindle) or Weblogs & New Media: Marketing in Crisis (free bits) (Kindle) or from your local bookseller.

Of Two Minds is also available via Kindle: Of Two Minds blog-Kindle

Thank you, Nathan G. ($100), for your ongoing extraordinary generosity to this site-- I am greatly honored by your support and readership. Thank you, Michael T. ($50), for your outstandingly generous contribution to this site-- I am greatly honored by your support and readership.

Terms of Service

All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.

Our Privacy Policy:

Correspondents' email is strictly confidential. This site does not collect digital data from visitors or distribute cookies. Advertisements served by third-party advertising networks such as Adsense and Investing Channel may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative)
If you have other privacy concerns relating to advertisements, please contact advertisers directly. Websites and blog links on the site's blog roll are posted at my discretion.

Our Commission Policy:

As an Amazon Associate I earn from qualifying purchases. I also earn a commission on purchases of precious metals via BullionVault. I receive no fees or compensation for any other non-advertising links or content posted
on my site.

  © Blogger templates Newspaper III by 2008

Back to TOP